Hi,
Please clarify:
1. Who is the principal employer if there is a contract with the agency, and the agency deputes its staff to work onsite in any organization?
2. What are the liabilities of the organization on whose premises the workers/contract laborers are working?
3. In terms of salary, are any PF deductions, etc., needed to be made?
4. Is registration mandatory for contract labor by the organization where staff/laborers are working onsite, even if the contract is with the agency?
This query is in regard to the Bank.
From India, Hyderabad
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1Please clarify:
1. Who is the principal employer if there is a contract with the agency, and the agency deputes its staff to work onsite in any organization?
2. What are the liabilities of the organization on whose premises the workers/contract laborers are working?
3. In terms of salary, are any PF deductions, etc., needed to be made?
4. Is registration mandatory for contract labor by the organization where staff/laborers are working onsite, even if the contract is with the agency?
This query is in regard to the Bank.
From India, Hyderabad
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1. A principal employer, in the perspective of the 'contract' with the agency, is the organization where employees are deployed.
2. All liabilities of a principal employer.
3. Yes, the contractor shall comply with it. The principal employer shall make sure that the contractor fulfills compliance formalities.
4. To employ contract labor, it is mandatory to register the establishment. The principal employer shall submit an application in the given format.
From India, Bangalore
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2. All liabilities of a principal employer.
3. Yes, the contractor shall comply with it. The principal employer shall make sure that the contractor fulfills compliance formalities.
4. To employ contract labor, it is mandatory to register the establishment. The principal employer shall submit an application in the given format.
From India, Bangalore
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Please advise, if the contract employees are fewer than 20, is registration still required? Additionally, is the registration process required to be completed separately by each office/branch premises, or can a regional office handle it on behalf of each branch/office?
From India, Hyderabad
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From India, Hyderabad
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Dear Member,
If I have understood correctly, the arrangements in the present case are as follows: your bank has engaged the agency to provide services at your clients' locations through a contract. In this case, the bank is the Principal Employer (P.E) and the agency is the Contractor. The deployment on-premises or off-premises is not material in this case. All liabilities and responsibilities will be handled by the agency as the Contractor and by the bank as the Principal Employer. Social security compliance (EPF & ESI) will be ensured by the Principal Employer, possibly through the agency/Contractor. Yes, bank registration is a requirement if the number of contract laborers in this specific contract, either on its own or combined with other contracts for labor supply with the bank, exceeds 20 individuals.
From India, Lucknow
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If I have understood correctly, the arrangements in the present case are as follows: your bank has engaged the agency to provide services at your clients' locations through a contract. In this case, the bank is the Principal Employer (P.E) and the agency is the Contractor. The deployment on-premises or off-premises is not material in this case. All liabilities and responsibilities will be handled by the agency as the Contractor and by the bank as the Principal Employer. Social security compliance (EPF & ESI) will be ensured by the Principal Employer, possibly through the agency/Contractor. Yes, bank registration is a requirement if the number of contract laborers in this specific contract, either on its own or combined with other contracts for labor supply with the bank, exceeds 20 individuals.
From India, Lucknow
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Notification No G.S.R. 1128(E) Contract Labour (Regulation and Abolition) Central Amendment .pdf
LABOUR CONTRACT AGREEMENT.doc
Contract Labour Act.zip